[ NNSquad ] Re: L.A. Times Biz Section/Lazarus: "We can't be neutral on net neutrality"

[Stefano Quintarelli <stefano@quintarelli.it>]

Vint Cerf wrote:
> no i am not in favor of volume pricing; i am in favor of capacity 
> (bit/second) pricing.

I think that, if you you're an operator doing ULL, and you have a fibre 
backhauling, then the vast majority of costs you incur in, is the ULL 
line rental which is not charged on bitrate but rather a fixed amount 
per pair. therefore, your costs are essentially fixed. will you limit 
the capacity to x Mbps while the access line could bear X Mbps ? one of 
your competitors will not and he will get the customers.

It seems to me that capacity pricing can work where costs are somewhat 
capacity related (e.g. where you don't have fibre backhauling, where you 
don't have mandatory ULL to the incumbent,...) but, otherwise I have the 
impression that you might end up having just one capacity class which is 
full capacity.

ciao, s.


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